Markets trade near fresh record high levels in late afternoon session

Key benchmark indices maintained their gains and were trading near fresh record high levels in late afternoon session as traders went for value buying. Traders took support as Reserve Bank of India said that India’s external debt ratio improved to the best level in 13 years in FY24, declining to 18.7 percent of the GDP from 19 percent in the previous year.  The country added nearly $40 billion during this period, taking the total debt to $663.8 billion as of March 2024. On the global front, Asian markets were trading mostly in green as a rebound in tech stocks helped offset hawkish comments from Federal Reserve officials. Amid much uncertainty about the interest-rate outlook, investors braced for the release of key U.S. inflation reading, due later this week for directional cues. European markets were trading higher after a euro-area policy maker hinted that two more interest rate cuts may be in store this year.

The BSE Sensex is currently trading at 78681.22, up by 627.70 points or 0.80% after trading in a range of 77945.94 and 78704.54. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.11%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Telecom up by 2.30%, Energy up by 1.19%, TECK up by 0.92%, Oil & Gas up by 0.81% and Bankex was up by 0.65%, while Metal down by 1.51%, Realty down by 0.96%, Auto down by 0.52%, Consumer Disc down by 0.44% and Consumer Durables was down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.59%, Reliance Industries up by 3.42%, Ultratech Cement up by 2.49%, Kotak Mahindra Bank up by 1.42% and ICICI Bank up by 1.33%. On the flip side, Tata Steel down by 1.88%, Mahindra & Mahindra down by 1.66%, JSW Steel down by 1.10%, Tech Mahindra down by 0.85% and Titan Company down by 0.81% were the top losers.

Meanwhile, textiles Minister Giriraj Singh has said the government has approved over Rs 10,000 crore production linked incentive (PLI) scheme for textiles and now considering to extend it to the garments sector with a view to boosting domestic manufacturing and exports. He said that huge opportunities are there to increase exports and the industry should target $50 billion worth of shipments in the coming years. 

The minister noted that in 2021, the government approved the PLI scheme for textiles with an approved outlay of Rs 10,683 crore over a five year period to promote production of MMF (man-made fibre) Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable textiles industry to achieve size and scale and to become competitive. He said ‘the market size of the Indian textiles industry is about $165 billion and we have to take it to $350 billion.’ He also said that the ministry is framing a roadmap to move ahead of China in the sector.

Singh also called for the adoption of the 'hub and spoke' model to enhance domestic manufacturing, encouraged industry collaboration and underscored the importance of establishing Indian brands. The ministry is also poised to revive the Scheme for Integrated Textile Parks (SITP) to create internationally standardized parks. Further, he suggested the industry establish their own brands instead of becoming suppliers to global brands, besides focusing on green textiles and recycling.

The CNX Nifty is currently trading at 23865.35, up by 144.05 points or 0.61% after trading in a range of 23670.45 and 23880.50. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.14%, Reliance Industries up by 3.34%, Ultratech Cement up by 2.57%, ICICI Bank up by 1.47% and Kotak Mahindra Bank up by 1.42%. On the flip side, Hindalco down by 1.99%, Tata Steel down by 1.89%, Apollo Hospital down by 1.85%, Bajaj Auto down by 1.78% and Mahindra & Mahindra down by 1.66% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 493.92 points or 1.26% to 39,667.07, Taiwan Weighted added 110.72 points or 0.48% to 22,986.69, Jakarta Composite gained 25.74 points or 0.37% to 6,908.44, Shanghai Composite strengthened 22.53 points or 0.76% to 2,972.53, KOSPI increased 17.66 points or 0.64% to 2,792.05 and Hang Seng was up by 17.03 points or 0.09% to 18,089.93. On the flip side, Straits Times was down by 0.21 points or 0.01% to 3,326.07.

European markets were trading higher; UK’s FTSE 100 increased 46.79 points or 0.57% to 8,294.58, France’s CAC rose 29.73 points or 0.39% to 7,692.03 and Germany’s DAX was up by 155.81 points or 0.86% to 18,333.43.